Jeff and suddenly in ER

[W2R]

Notice that the following quote was written by observer, not Jeff. I didn't see any indication that Jeff, whose financial situation we are discussing, planned to take health care for the needy. Observer may be in a financial situation in which this health care is appropriate and may have missed the fact that Jeff is better off.

Healthcare is the next issue. Here, I'd check your local county or state for low income health care benefits. They may provide free medical coverage as my county did for me.

Rescueme mentioned my approach to SS:

Rather than depend on a long ago poster who was married (different SS options), not near claiming benefits, and also based that the SS program has changed in that time (e.g. payback option eliminated), I would suggest that you confer with folks on the board on that currently have the same situation, in today's SS "environment".

For instance W2R has a similar situation in some ways as you. She is retired (great! ) and is also single (at this time, but who knows what the future may bring ).

She has mentioned that at this time, she is delaying SS. While I/DW are delaying SS (we're both SS age) in order to "maximize benefits" in our situation, W2R may give you some ideas on why she is currently choosing to delay, as a single person.

I am currently choosing to delay SS, though I reserve the option to change my mind! I am 62, single, and have sufficient financial resources to easily cover my needs if I wait for SS. With good health, plenty of centagenarians in my family tree, and only a very tiny pension, I would like to have a larger SS check coming in regularly in my old age. So, I am waiting. I intend for SS to be more like old age insurance for me than it may be for some folks.

If we assume that SS benefits will remain as they are now, it makes sense to me for a single person to wait before claiming SS if they can afford to do so since they increase quite a bit for each year that one waits. However, we don't really know that SS benefits will not be reduced or taxed more or somehow diminished during the next few years. Some people choose to claim SS at 62, to get what they can before SS runs out of money or before benefits are reduced or taxed more than they are now. That makes sense too.

Whether or not to claim SS benefits early has become like a gigantic game of "chicken". So far, I have not and I do not plan to claim them until at least 66. If I make it to 66 I will reassess at that time, and maybe wait until 70. Every few months, headlines indicate that massive changes are in store for SS but so far they have not scared me enough to claim SS.

 

[rescueme]

Whether or not to claim SS benefits early has become like a gigantic game of "chicken". So far, I have not and I do not plan to claim them until at least 66. If I make it to 66 I will reassess at that time, and maybe wait until 70. Every few months, headlines indicate that massive changes are in store for SS but so far they have not scared me enough to claim SS.

Thanks for your response, since you are in a similar situation as the OP. You are reflecting your decision on SS, based upon your "unique" situation...

While the OP may not follow your direction, at least they have the opinon of one who has/is "there"...

Much better than one who is giving their opinion, yet not being in the same situation, nor making the same decision ("do as I say - not as I do")...

 

[Sandhog]

Depends how much you plan on spending.

If Jeff moves to move to a clothing optional community in Florida, I'm sure he won't spend any money on clothing.

 

[REWahoo]

If Jeff moves to move to a clothing optional community in Florida, I'm sure he won't spend any money on clothing.

But his sunscreen bill will go through the roof...

 

[KingB]

Here, I'd check your local county or state for low income health care benefits. They may provide free medical coverage as my county did for me.

Could this explain why my Cook County Property tax and my IL state Income Tax went up?

 

[Westernskies]

Observer may be in a financial situation in which this health care is appropriate and may have missed the fact that Jeff is better off.

Nope, IMO, just another example of someone who is consciously abusing the system, living on OPM, and advocating this as a lifestyle choice for ER....and why people are getting fed up with funding the entitlement state.

I asked for similar input about my retirement portfolio here not long ago. My age is exactly the same to the month and my funds aren't all that different, with a similarly modest pension as well..... Based on the funds you have and if you can follow these guidelines, I think you'll be just fine.

YMMV; I hope not.

 

[Sandhog]

But his sunscreen bill will go through the roof...

Not if Jeff stays under the umbrella drinking margaritas enjoying life of clothing optional. Come to think of it, clothing optional may not be a good idea if all the community members are retirees. I was daydreaming about young hot chicks exercising their options on clothing.

 

[W2R]

Not if Jeff stays under the umbrella drinking margaritas enjoying life of clothing optional. Come to think of it, clothing optional may not be a good idea if all the community members are retirees. I was daydreaming about young hot chicks exercising their options on clothing.

Think of the benefits, though! If some of the seniors are getting forgetful and drifty, they wouldn't even have to worry about remembering to get dressed in the morning.

 

[observer]

Could this explain why my Cook County Property tax and my IL state Income Tax went up?

No. You can thank the undefunded and overly generous pension system and all the years your and my taxes didn't cover things like deteriorating roads, bridges, schools, etc. Illinois had the lowest rate of any similarly large population state during those years.

 

[Sandhog]

Think of the benefits, though! If some of the seniors are getting forgetful and drifty, they wouldn't even have to worry about remembering to get dressed in the morning.

Why didn't I think of that. Also, with bad eyesights and forgetfulness even now, I would definitely would like to move in the community that Jeff is considering.

 

[observer]

Upon a closer look, the poster in #14 notes he is from Chicago. Could this be related?

Poster #24 seems to think that private health insurance rates are affordable in ER, and that even though you pay into the system all your life, it's somehow stealing when accessing those system's benefits.

Instead of criticizing others here with personal comments, come up with your own ideas and suggestions for managing medical premiums for the OP. This should not be the political and personal football it's become. I'd ask the Moderator to monitor these comments.

 

[Bestwifeever]

Hi, I am Jeff. I just got laid off of my job last week. I have been in the software development, maintenance and life-cycle support business almost continuously since I graduated college from Penn State in 1974.

Anyway, I have been lurking here for a few days, looking at the posts about when to take SS, and learning terms like FireCalc, SWR, and DW. I am single, by the way. My Dad passed away recently and I should be inheriting about $350K from the family trust (that probably won't happen for 6 or 8 more months, though). Right now, I have a $600K portfolio (after the inheritance, I'm saying the portfolio would be $950K), invested moderately aggressively, $55K in cash and a $68K 401K from my former employer. I turned 59 in March, 2011. My only significant debt is a $68K home equity line of credit at prime-1/2 (currently 2.25%) .

I'll have to check with some local realtors, but the townhouse I live in should be worth about $250K or so... I'd like to sell it and move to a clothing optional community in Florida!

Judging from the advice I've seen here, I would take SS at 62 ($1695/mo) and I can also choose to begin receiving a pension from my first employer, which at 60 years old would be $7759/yr and it goes up by $665 for each year I delay, so at 62 it would be worth $9089/yr.

How am I doing so far?

Jeff

Welcome to the boards! I agree with previous posters to run your numbers through FireCalc and other calculators after you figure out your projected (and actual) expenses.

A lot of people here seem to have high-deductible HSA plans that work well for them. You don't have to wait for cobra to run out before moving into one.

You'll save a lot of money on clothes if your plans to move work out .

(and Observer, from an early post of yours in December 2010: "I'm 58 and plan on retiring from federal service next year under MRA+10. Only 7 months to go. Really dislike my job, but the FEHB medical plan that retirees get is the only thing that motivates me to get up in the morning and schlepp my way in every day." Did you leave early? No FEHB?)

 

[Major Tom]

Nope, IMO, just another example of someone who is consciously abusing the system, living on OPM, and advocating this as a lifestyle choice for ER....and why people are getting fed up with funding the entitlement state.

I know that this particular issue is off-topic to the thread but after I decided that I wanted to comment, my choices were either to begin a new thread, or just to comment here, so I'm taking the latter approach.

The county in which I live has a medically indigent health service program for which the main requirement is that you are making less than 200% of the Federal poverty level (currently $21,780). It offers a comprehensive package of health and dental benefits with very reasonable co-pays. Although most other counties here in California require that the applicant have no more than $2,000 in liquid assets, my county does not have that requirement. Intrigued, I called the county healthcare services agency to ask about this. I was told that it is perfectly OK with them if you have liquid assets. They want you to declare them, but don't use them to determine eligibility. The lady even volunteered the information that it's also fine if you are living off your assets; they are only concerned with the income you are drawing.

I'm still amazed by this. I notice that this particular program is called the "Medically Indigent Health Service Program", which seems to indicate that their attitude toward assets is by design and an integral part of the program; I did find a mention somewhere on their website that the program can often help those who have been disqualified from Medi-Cal (California's version of Medicaid) as a result of having too many assets.

Having grown up in England and even after having lived in the US for almost 25 years, it is still interesting to me how these kind of things vary so much, not only from state to state, but also from county to county.